Comperio takes fiduciary responsibility very seriously. We take on a 3(21) or 3(38) Fiduciary responsibility for our clients’ retirement plans. In doing so we create and execute a comprehensive fiduciary process. We act as a quarterback in driving that process by formalizing and monitoring the plan. This process includes:
- Plan Design Review
- Annual Strategic Plan/Fiduciary Calendar
- Investment Policy
- Investment Offering
- Fee Analysis/Plan Benchmarking
- Quarterly Monitoring
- Plan Operational Support
- Meeting Minutes and Document Archive
Plan Design Review
Plan sponsors offer retirement plans for many reasons which include attracting top talent and ensuring participants are able to retire in good financial health. We utilize industry research to help plan sponsors get the most from their plans. We continually compare our clients’ plans to others in the industry by evaluating features such as eligibility; auto-enrollment and auto-escalation; company contributions and distribution provisions with the goal of providing a competitive offering.
Annual Strategic Plan /Fiduciary Calendar
Many plan sponsors have seen their plans’ assets increase in value dramatically over the past few years while litigation and a focus on fiduciary process has intensified. The ability for a committee to leverage and rely on a trusted consulting firm has proven to be key in these tumultuous times.
As a Fiduciary we believe that planning is just as important as execution. Our consultants work with the committee to develop a Fiduciary Calendar that outlines the meeting schedule, agenda items, goals, and objectives in support of the annual strategic plan.
In working with the Committee, we will establish guidelines for investments, benchmarks and performance monitoring criteria. In doing so, we will write and establish a formal Investment Policy Statement (IPS). We view the IPS as a living document which means at least annually we revisit the IPS with the committee and take responsibility for maintenance of IPS. The IPS is tied to the quarterly monitoring report to ensure that the criteria in which funds are selected and evaluated are in sync.
Investment Offering/Fund Selection Process
We have a qualitative and quantitative process in analyzing and selecting funds/managers for our clients. We customize the investment menu based upon the employee demographics and plan goals. This multi-tier investment structure typically includes a do it for me and do it myself tier along with a robust index tier. We also explore and work with clients in creating a retirement tier.
Selection of the QDIA (Qualified Default Investment Alternative) is a key driver in 401(k) retirement plans. We analyze participant demographics and with the committee determine appropriate goals in deciding the QDIA option for the plan. Typically, this is a target date fund, a balanced fund or managed account.
Fee Analysis/Plan Benchmarking
We construct a detailed transparent fee analysis process which includes an evaluation of fees at least annually along with fee benchmarking on a continual basis that evaluate recordkeeping, advisor, audit and fund fees.
A key issue for plan sponsors is understanding indirect compensation from the plan. This indirect compensation is called revenue sharing and is built into the share classes of the funds. Comperio analyzes the share classes to ensure the appropriate share class is offered in our clients’ plans.
Quarterly Monitoring/Investment Manager Due Diligence
We provide a custom Quarterly Monitoring Report that aggregates key information for the client’s plan review. It consists of a high-level 401(k) news/trends, market updates, and how the varying market events impacts each client’s specific funds. The fund review is tied to the client’s IPS and ensures a strong prudent process for fund review and due diligence oversight.
Plan Operational Support
The complexity and rapid evolution of retirement plans places a strain on plan sponsor’s HR and Finance departments resources. We support clients in navigating issues with their recordkeeper, as well as support them in both operational and plan design.
Meeting Minutes and Document Archive
One of the most critical factors in having a strong fiduciary process is documentation. We write the meeting minutes and provide access to client documents through an online portal.